Comparison between with other Tax Saving Investments

There are several other savings schemes that helps in wealth creation like FD, PPF and NSC to name a few. But the returns from these schemes are taxable. This is where ELSS ( Tax Saving Mutual Funds) stands out with its dual-benefit – its returns are generally higher and tax-free. This coupled with a mere lock-in period of 3 years is all the more reason for you to invest in ELSS ( Tax Saving Mutual Funds ) now. Here is a quick glimpse at how ELSS is superior to other commonly used tax-saving investments :-

Investment

Returns

Lock-in Period

Tax on Returns

5-Year Bank Fixed Deposit

6% to 7%

5 years

Yes

Public Provident Fund (PPF)

7% to 8%

15 years

No

National Savings Certificate

7% to 8%

5 years

Yes

National Pension System (NPS)

8% to 10%

Till Retirement

Partially Taxable

ELSS Funds

15% to 18%

3 years

No

As a tax-paying citizen, the Section-80 of the Indian Tax Act allows you some breather – a deduction of up to Rs. 1,50,000 from your total annual income.

Best performing Tax Saving Funds

Many investors start their investment journey through an ELSS to save taxes. Eventually, they start spreading their investments once they get a better understanding of various available schemes. Sometimes it becomes difficult for an investor to compare all the above parameters and choose a mutual fund accordingly. ClearTax can help you here by handpicking the most suitable and best performing investment portfolios for you based on your financial goals.

Efiling Income Tax Returns(ITR) is made easy with ClearTax platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with ClearTax GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. ClearTax can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with ClearTax by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download ClearTax App to file returns from your mobile phone.